Key Reforms to Australia's Skilled Migration Points Test | Australia Immigration News

Skilled migrants significantly contribute to Australia's economy by enhancing productivity and boosting earnings. However, the current system has room for improvement in ensuring the most skilled migrants are prioritized.

1. Rewarding the Most Skilled Migrants

The points test should prioritize migrants who can make the most significant economic contributions, which can be gauged through their lifetime earnings. Factors such as education, English proficiency, occupational skill levels, and prior earnings in Australia are critical indicators of a migrant's long-term economic impact. Despite their importance, these factors currently account for only 70 out of the available 130 points.

2. Eliminating Unnecessary Points

The system allocates points for characteristics that are not strong predictors of long-term earnings. For instance, migrants receive points for studying in Australia, which does not necessarily correlate with higher earnings. Similarly, completing a 'professional year' for fields like accounting, IT, and engineering, which costs up to $15,000, does not significantly enhance employability or earnings potential.

3. Expanding Eligibility

Currently, points-tested visas are limited to migrants in occupations deemed in shortage. This restriction excludes many highly skilled individuals from other professions who could contribute significantly to the economy. Moreover, many skilled migrants do not remain in their nominated occupations long-term, often transitioning to other high-skill roles that better match their abilities.

Proposed Reforms

To address these issues, the following changes are recommended:

• Increase Maximum Points: Raise the maximum points available from 130 to 500.
• Prioritize Key Skills: Allocate more points for higher degrees, excellent English language skills, and skilled spouses.
• Age-Based Points: Offer more granular points based on an applicant’s age.
• Abolish Certain Points: Remove bonus points for Australian study, regional study, professional years, and specialist education qualifications.
• Employment Experience: Offer points only for the first two years of high-skilled employment experience and high-paying Australian work experience.
• Open to All High-Skill Occupations: Allow points-tested visas for all high-skill occupations.
• Set Minimum Points Floor: Establish a minimum points floor of 300 for a points-tested visa and guarantee invitations for applicants scoring at least 400 points.

Economic Impact

Implementing these reforms could substantially increase the long-term earnings of points-tested visa holders, boosting government budgets by $84 billion over the next 30 years. This would enhance the productivity and economic integration of skilled migrants, ultimately benefiting the broader Australian workforce and economy.

Reforming the points-tested skilled migration visa system is crucial for maximizing the economic benefits of skilled migrants. By aligning the points allocation with the factors that most strongly predict long-term success, Australia can attract the best global talent and significantly bolster its economic future.